Source: Radio New Zealand
Diesel was selling for an average $3.89 a litre on Monday, according to Gaspy, while 91 was $3.48. RNZ / Quin Tauetau
Anyone planning to boycott their road user charges (RUCs) as the cost of diesel rises may find their protest backfires.
A number of online groups have raised the prospect of refusing to pay for RUCs as the cost of diesel surpasses that of other fuel types. One group, Stand Up to RUCs, has 1400 members.
Its admin said the government could suspend or reduce RUCs temporarily to take the pressure of food and freight sectors.
Diesel was selling for an average $3.89 a litre on Monday, according to Gaspy, while 91 was $3.48.
While petrol vehicles pay excise tax within their pump price, diesel vehicles pay RUCs on top of what it costs them to fill up. That is because a number of diesel-powered vehicles, such as farm machinery, are not used on roads.
RUCs are charged on distance travelled and according to vehicle weight. Most passenger vehicles will pay $76 per 1000km.
People who do not pay them face a $200 police fine plus a 10 percent penalty on fees not paid within two months. Another 10 percent is added if not paid after three months.
AA fuel spokesperson Terry Collins said even though the price of diesel was high, the idea that it was unfair to pay RUCs on top was unfounded.
“You’re paying a levy to update the roads you’re using. Hybrid vehicles have to do it, diesel have to do it, and ultimately in the future, petrol will have to do it when they move to move all the vehicle fleet over to road user charges.
“Is it unfair? No it’s very fair. Has it come at a time when the diesel prices are high and it’s putting cost pressures on? Yes, but it doesn’t take away from what the road user charges are in place for and what they do.
“The problem is the price of diesel, not the road user charges. They weren’t complaining about the road user charges before this diesel went up, when the diesel was cheap, that was fine to pay.”
David Birkett, Federated Farmers arable chair, said frustration over the price of diesel, as well as other fuels, was understandable,
“There is genuine concern that delivery of diesel to some smaller rural areas is behind schedule. Diesel demand on farm is relatively inelastic and so unavoidable – the crops still have to be brought in, feed taken out to animals, and produce taken to processors.
“However, suspending road user charge payments as some form of protest doesn’t make a lot of sense. Most diesel used by farmers is on the farm, not on public roads, and so does not incur RUC. The financial relief for farmers is therefore minimal.
“Any immediate relief of cost savings from suspending RUCs means there is less money for the Government to spend on road and bridge maintenance and renewal longer term. Many rural roads and bridges are already in dire need of investment.
“Federated Farmers believes the best course is for farmers – and other diesel users – to do what they can to reduce /be more efficient with their use of the fuel. The fix for this situation is a clear return to normalcy in the supply and price of fuels upon which farming and so many other businesses depend.”
The government has expanded the distance-based RUC system to also include light electric vehicles.
EVs had been exempt from the scheme since 2009, but multiple governments had proposed bringing in the charges for EVs once they accounted for 2 percent of vehicles on the roads.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
